Israel’s Gilat Satellite Networks has agreed to purchased DataPath, a communications firm serving US military and government customers.

The acquisition will expand Gilat’s position in the defence market. The company expects an approximately $50m increase in annual revenue for its defence sector, following the completion of the deal.

Gilat’s board of directors and DataPath’s board of directors and stockholders have approved the acquisition.

Expected to be complete in the third quarter of 2023, the deal is subject to the receipt of some regulatory approvals, clearance from the Committee on Foreign Investment in the United States (CFIUS), and other customary closing conditions.

Gilat CEO Adi Sfadia said: “DataPath is a leading US integrator, providing mission critical solutions and services, and is a large provider to the US Department of Defense (DoD) of transportable hubs, mini-towable hubs, and a portfolio of military-grade portable antenna terminals.

“The acquisition is a major milestone in Gilat’s growth strategy to expand its business into the US DoD and government sectors, as well as into other international governments and defence markets. We see great synergy between the companies and are looking forward to working with DataPath’s leadership in support of its customers.”

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Financial terms of the transaction have not been disclosed.

With over 25 years of experience, DataPath has a strong foothold in the supply and maintenance of portable ground stations and other SatCom systems, as well as associated support services.

It has a huge amount of expertise in systems and mechanical engineering, and software development.

DataPath CEO and executive chairman David McDonald said: “We are proud of our DataPath team to get the company positioned to join Gilat and expect that, together with Gilat’s strong position in the SATCOM market and its vast international reach, DataPath will be well positioned to continue its profitable growth and its continual commitment for integrated solutions built with best of breed components.”

Gilat received legal counsel from Naschitz Brandes Amir & Co and Foley and Lardner, and financial advice from Needham & Company and Quilty Analytics.

DataPath’s legal counsel are DLA Piper and Greenberg Traurig, and RCBG is acting as its exclusive financial advisor.

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